Variable interest rates - what are you paying?

Seems like a good investment IO rate to me. Do you know of any major banks offering lower?

 

right you are!

 

@Brady is that on a wealth package? if so equates to ~0.2% off advertised rate.

 

Maybe call again and say Suncorp is offering you 3.79% Variable IO Investment with $0 annual fees and you're thinking of refinancing to them OR Send them a signed discharge form and see if they offer any better.
Not guaranteeing that will work but sometimes only when you've got one foot out the door will they offer more than the standard discounts

 

Yes has to be wealth package.
It's a total discount of 0.34% for the 2 year fixed.
Colleague just told me they got 2.99% @ 3YR Fixed OO P&I
Matching the BankSA/Westpac/St.George.

 

A quick search (not all majors, I know)
Suncorp
NAB
Westpac & St George
ING
AMP
Citibank
Macquarie

 

If my IO period is expiring in 1.5 years, would the banks allow you to apply for Fixed IO for 2 years or or am I only able to apply for1 year fixed?

 

Just tried calling again and they are not budging.. 4.25% is the best they are doing and that's that. I even asked how to discharge my mortgage and go to one of the banks you listed that are all below 4% and he didn't even budge. Has anybody else had any luck or do any brokers know if it is even possible to do better?

 

A colleague called them up on Monday and got 4.10 on and IP 3.35 on PPOR

 

I can't get St George to budge below 3.97 P&I INV

 

Go for online banks like UBank etc. Lower rates. You don’t need to stick with the big banks especially if they are not even passing half of 0.25.

 

As I mentioned on pg 4 of this thread

If you can get 3.59% variable interest only with full offset - for any loan above 250k - through some of the brokers on this forum with Macquarie Bank - why would you not !?!??!?!?!?!?!?!?!?!?!?!?!?!?

That rate is before todays rate reduction

 

What is their loan amount and was it interest only? I'm wondering if this has made a difference?

 

It does sound very tempting.. Rolf's comments below it on page 4 about serviceability kind of scare me off. I want to keep building a portfolio.

 

I think you would be mad not to talk to a broker or Macquarie Bank direct and find out what you can borrow

I find that all the banks treat new customers better than exisiting loyal customers.

I would switch to Macquarie then when you max out with them - go back to one of the majors and they will always bend over backwards to get your business

The bank you are with does not deserve your loyalty

 

Has anyone got any idea what the ballpark figure would be for a commercial property/light industrial in a trust structure? Assume 30-50% Gearing.

I've notice trust structures incur higher interest rates. Why is this?

 

Some lenders restrict products for trusts which might result in higher rates. Other than that most offer the same rates.

I assume you're asking what sort of rates you'd pay for a 30% - 50% LVR on a commerical property? There's a lot of other variables to consider as well, but you'd probably pay somewhere between 4.4% and 5%.

 

Thanks for the response. Do you ever see offsets linked to these loans and what other variables/expenses would one expect to encounter?

I presume:
Lease Terms
Quality of Tenant
Establishment fees

4.4+ seems quite high!

 

Some commercial loans do have offset accounts. There's a lot variables that lenders consider such as location, the type and use of the property, the strength of the application. It's not possible to give any sort of rate quote without knowing quite a bit more.

If you're comparing loans with residential property loans, you need to reset your thinking. Rates are higher, fees are higher, terms are quite different. 4.4% isn't high at all. You pay application fees, legal fees, valuation fees, these can run into the thousands.